The states of Missouri and Colorado this week took very different actions relative to the impact of federal stimulus payments for the coronavirus pandemic will have on the state’s taxpayers. In the Show Me State, republican Governor Mike Parson signed a bipartisan tax bill that excludes stimulus payments authorized by the CARES Act from being included in residents’ income for state tax purposes. It is estimated that SB 676 will save Missouri taxpayers as much as $36 million. Conversely in another democratic trifecta state, Colorado legislators opted to decouple from certain pandemic-driven federal tax relief provisions contained in the very same CARES Act. HB 1420, which democrat Governor Jared Polis signed this past weekend requires businesses claiming an expanded federal net operating loss deduction to include in taxable income the portion of the deduction affected by the net operating loss provision in the CARES Act. Additionally, the new law, which is expected to bring $113 million into the state coffers in FY 2021 and $23 million in FY22, limits the qualified business income deduction for pass-through business owners provided by the 2017 Tax Cuts and Jobs Act. In other action in the Centennial State, Polis also signed SB 20-207, which eliminates until 2022 the automatic surcharge on employer-paid payroll taxes that replenishes the state unemployment trust fund. At the same time, the bill also rather dramatically changes unemployment insurance regulations by expanding the timeframe for the payment of full benefits until September 2022.